The federal election will take place prior to 18 May this year and the two major parties have now declared their position on procurement.
Federal Labor released its plan on 21 January 2019, campaigning under the slogan “Local Projects. Local Jobs: Labor’s National Procurement Plan”. The plan will aim to stimulate small and medium business growth throughout local communities and comes a few months after the Liberal Government released its second campaign issue of “Backing Small Business”.
If implemented, Labor’s policy will see local businesses become the backbone of Commonwealth Government projects with a value of over $10 million as these will require a ‘Plan for Local Jobs’ section within the tender document.
Labor has stated competition needs to be shared among locals who are locked out of job opportunities due to multinationals using their own suppliers. Labor claims the Commonwealth Government spends $50 billion every year on goods and services, which, they say, can be better allocated towards local contracts.
Labor’s three-point plan
Labor has announced a three-point plan which includes:
1. Better access to government contracts for local businesses
2. Supporting local business at home and abroad
3. More local apprentices and boosting TAFEs
Conversely, the Liberal Party’s plan, as it relates to procurement, focuses on the following areas:
1. Red tape relief
2. Helping cash flow
3. Fairer competition
It will be interesting to see how these areas develop, and the differences that are drawn out between the parties, as the election draws closer.
 Labor Government, ‘Local Projects. Local Jobs: Labor’s National Procurement Plan’ Parliament of Australia, 21 January 2019. More...
 Liberal Government, ‘Backing Small Business’ Liberal Issue 2, November 2018. More...
Author: Scott Alden & Andrew Morello
Scott Alden, Partner
T: +61 2 8083 0419
Stephen Natoli, Partner
T: +61 3 9321 9796
Troy Lewis, Partner & National Head of Construction and Infrastructure
T: +61 7 3135 0614
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